Pension Plans and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2022

Retirement Benefits, Description [Abstract]

Pension Plans and Other Postretirement Benefit Plans

NOTE 6. PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS

Avista Utilities

Avista Utilities’ maintained the same pension and other postretirement plans during the six months ended June 30, 2022 as those described as of December 31, 2021. The Company contributed $28.0 million in cash to the pension plan for the six months ended June 30, 2022, and expects to contribute a total of $42.0 million in 2022.

The Company uses a December 31 measurement date for its defined benefit pension and other postretirement benefit plans. The following table sets forth the components of net periodic benefit costs for the three and six months ended June 30 (dollars in thousands):

	Pension Benefits						Other Postretirement Benefits
	2022			2021			2022			2021
Three months ended June 30:
Service cost	$	6,229		$	6,254		$	1,097		$	897
Interest cost		6,520			6,530			1,384			1,309
Expected return on plan assets		(10,950	)		(9,704	)		(700	)		(783	)
Amortization of prior service cost		75			75			(275	)		(275	)
Net loss recognition		939			1,688			870			1,246
Net periodic benefit cost	$	2,813		$	4,843		$	2,376		$	2,394
Six months ended June 30:
Service cost	$	12,000		$	12,500		$	2,160		$	1,905
Interest cost		13,427			13,110			2,824			2,685
Expected return on plan assets		(21,901	)		(19,479	)		(1,400	)		(1,458	)
Amortization of prior service cost		150			150			(550	)		(550	)
Net loss recognition		2,087			3,511			1,760			2,419
Net periodic benefit cost	$	5,763		$	9,792		$	4,794		$	5,001

Total service costs in the table above are recorded to the same accounts as labor expense. Labor and benefits expense is recorded to various projects based on whether the work is a capital project or an operating expense. Approximately 40 percent of all labor and benefits is capitalized to utility property and 60 percent is expensed to utility other operating expenses.

The non-service portion of costs in the table above are recorded to other expense below income from operations in the Condensed Consolidated Statements of Income or capitalized as a regulatory asset. Approximately 40 percent of the costs are capitalized to regulatory assets and 60 percent is expensed to the income statement.